Japan's benchmark stock index fell on Thursday after hotter-than-expected US inflation data battered Wall Street, while the yen dipped to a 34-year low.

The Nikkei 225 index dropped 0.35 percent, or 139.18 points, to end at 39,442.63 while the broader Topix index edged up 0.15 percent, or 4.17 points, to 2,746.96.

The dollar stood at 153.02 yen, having touched 153.24 earlier in the day -- its highest level since 1990.

Figures Wednesday showed US consumer prices rose more than expected last month, dealing a blow to hopes for a June interest rate cut, while traders have also pared bets on the bank delivering three reductions this year.

Taking cues from Wall Street losses, "high-priced stocks like semiconductor-linked shares were widely sold off", IwaiCosmo Securities said.

But the "Topix occasionally swung upwards with investors in export-driven shares cheered by a weaker yen", the brokerage added.

As the yen slid, Japanese authorities repeated that they were prepared to take action if necessary, hinting at a government intervention.

Japan last stepped into currency markets to prop up the yen in October 2022.

Among major shares, Uniqlo operator Fast Retailing dropped 0.58 percent to 44,100. After the market closed, the retailer reported record consolidated revenue of nearly 1.6 trillion yen for September 2023 to February 2024.

Sony dropped 0.81 percent to 12,855 yen and SoftBank slid 1.03 percent to 8,447 yen, but Toyota climbed 1.10 percent to 3,781 yen.